INTRODUCTION

If a company produces goods in a foreign country, then the "home" country does not really benefit from that production. Thus, if Pepsi bottles and sells soda in Japan, those revenues should not be included in the GNP of the United States. The GDP (Gross Domestic Product) provides a better indicator of the health of a country's economy. This measure refers to the value of the goods and services produced within the boundaries of an economy during a given period of time.

Both the GNP and Gross Domestic Product (GDP) are economic measures and indicate nothing about social or environmental conditions within a country. They are not measures of the quality of life. In fact, severe environmental problems can actually raise the GNP and GDP, because the funds used to clean up environmental messes (such as hazardous waste sites) help to create new jobs and increase the consumption of natural resources. The United Nations Human Development Index is an estimate the of quality of life in a country based on three indicators: life expectancy, literacy rate and per capita GNP.